Statute Details
- Title: Gas (LNG Importer’s Licence — Exemption) Order 2021
- Act Code: GA2001-S84-2021
- Legislation Type: Subsidiary Legislation (SL)
- Authorising Act: Gas Act (Cap. 116A)
- Enacting Authority: Energy Market Authority of Singapore (with approval of the Minister for Trade and Industry)
- Commencement: 8 February 2021
- Making Date: 22 January 2021
- Current Version: Current version as at 27 March 2026 (per the legislation portal status)
- Key Provisions: Section 2 (Definitions); Section 3 (Exemption from section 6(1)(h) of the Gas Act)
What Is This Legislation About?
The Gas (LNG Importer’s Licence — Exemption) Order 2021 (“the Order”) is a targeted regulatory instrument made under the Gas Act (Cap. 116A). In practical terms, it creates a narrow exemption from a licensing requirement that would otherwise apply to certain persons who import liquefied natural gas (“LNG”).
The licensing regime in the Gas Act is designed to regulate the import, handling, and supply of gas to ensure safety, security of supply, and compliance with energy market and regulatory standards. However, not all LNG imports are intended for entry into Singapore’s gas supply system. Some LNG is imported and used specifically for maritime purposes—namely, to fuel ships within ports, and to provide ancillary services required for LNG bunkering operations.
This Order therefore clarifies that section 6(1)(h) of the Gas Act does not apply to persons importing LNG in two specific circumstances: (i) where the LNG is not conveyed and not intended to be conveyed into the gas supply system; and (ii) where the LNG is used only for LNG bunkering or for “associated gas-up and cool down” services. The result is a regulatory carve-out that supports LNG bunkering activities while maintaining the licensing framework for LNG intended for the broader gas supply network.
What Are the Key Provisions?
1. Citation and commencement (Section 1)
Section 1 provides the short title and states that the Order comes into operation on 8 February 2021. For practitioners, this matters because it determines when the exemption became legally effective and can affect compliance assessments for activities conducted before and after that date.
2. Definitions (Section 2)
Section 2 defines three key terms that control the scope of the exemption:
- “LNG bunkering” means the supply of LNG to an LNG-powered ship within a port, as a fuel used for the operation or propulsion of the ship.
- “associated gas-up and cool down” refers to the purging of inert gas and cooling to cryogenic temperatures of the LNG fuel storage system of an LNG-powered ship prior to LNG bunkering.
- “port” means any place in Singapore and any navigable river or channel leading into such place declared to be a port under section 3 of the Maritime and Port Authority of Singapore Act (Cap. 170A).
These definitions are legally significant because they tie the exemption to (a) the purpose of the LNG (bunkering and associated pre-bunkering operations) and (b) the location (within a defined “port”). A person seeking to rely on the exemption must be able to map their operations to these defined concepts.
3. The exemption from section 6(1)(h) of the Gas Act (Section 3)
The operative provision is Section 3. It states that section 6(1)(h) of the Gas Act does not apply to any person who imports LNG that satisfies both of the following conditions:
- (a) Not intended for the gas supply system: the LNG is not conveyed and not intended to be conveyed into the gas supply system.
- (b) Limited use: the LNG is used only for LNG bunkering or the provision of associated gas-up and cool down services.
In effect, the exemption is conditional and purpose-limited. It is not a general exemption for all LNG importers; it is an exemption for those whose importation is functionally connected to maritime bunkering and related operational steps, and who ensure that the LNG does not enter the domestic gas supply network.
4. Practical compliance implications of the conditions
Although the Order is brief, its conditions create compliance questions that lawyers and regulated entities typically must address:
- Evidence of “not conveyed and not intended to be conveyed”: Parties relying on the exemption should maintain documentation demonstrating the LNG’s intended end-use and physical routing (e.g., bunkering arrangements, transfer points, and operational plans showing no connection to the gas supply system).
- End-use limitation (“used only”): The LNG must be used exclusively for bunkering and associated gas-up/cool down services. Any diversion for other uses could jeopardise reliance on the exemption.
- Port-based scope: “LNG bunkering” must occur within a “port” as defined. This may require careful mapping of operational sites to the statutory definition of port under the Maritime and Port Authority of Singapore Act.
Because the exemption is framed as a carve-out from a licensing provision, failure to meet the conditions could mean the importer remains subject to the licensing requirement in section 6(1)(h) of the Gas Act.
How Is This Legislation Structured?
The Order is structured in a simple, three-section format:
- Section 1 sets out the citation and commencement date.
- Section 2 provides definitions for “associated gas-up and cool down,” “LNG bunkering,” and “port.” These definitions are essential for interpreting the exemption’s scope.
- Section 3 contains the operative exemption, specifying the conditions under which section 6(1)(h) of the Gas Act does not apply to LNG importers.
There are no additional parts or complex procedural provisions in the extract provided. The legislative design is therefore “narrow and functional”: it defines the relevant maritime activities and then exempts importers whose LNG is used only for those activities and not for the gas supply system.
Who Does This Legislation Apply To?
The Order applies to “any person” who imports LNG into Singapore, but only insofar as that person seeks to rely on the exemption from section 6(1)(h) of the Gas Act. The exemption is not limited by corporate form or industry category; rather, it is limited by the nature of the imported LNG and its intended and actual use.
In practice, the exemption is most relevant to entities involved in LNG bunkering supply chains—such as LNG suppliers, bunker operators, and logistics providers—where LNG is imported for delivery to LNG-powered ships within ports and for the associated pre-bunkering operational steps (purging inert gas and cooling to cryogenic temperatures). However, any importer whose LNG is intended to be conveyed into the gas supply system would fall outside the exemption and would need to consider the licensing requirements under the Gas Act.
Why Is This Legislation Important?
Although the Order is short, it has meaningful regulatory and commercial impact. LNG bunkering is a specialised maritime activity that depends on timely and efficient supply arrangements. By carving out LNG imports that are not intended for the gas supply system and are used only for bunkering-related purposes, the Order reduces regulatory friction for maritime fuel supply operations.
From a legal risk perspective, the exemption’s conditional language (“not conveyed and not intended to be conveyed” and “used only”) makes it essential for counsel to structure contracts, operational procedures, and compliance documentation around the exemption’s boundaries. For example, if a bunker supplier also has arrangements that could result in LNG being repurposed for other gas-related uses, the exemption may not be available. Similarly, if bunkering occurs outside a defined “port,” the activity may not qualify as “LNG bunkering” under the Order’s definitions.
Finally, the Order illustrates how Singapore’s regulatory approach can be both safety- and system-oriented while still enabling new energy and maritime infrastructure. It supports LNG bunkering while preserving the licensing framework for LNG that feeds into the broader gas supply system—thereby maintaining regulatory oversight where the public utility and energy market implications are greater.
Related Legislation
- Gas Act (Cap. 116A) — in particular section 6(1)(h) (licensing requirement) and section 8 (power to make the Order)
- Maritime and Port Authority of Singapore Act (Cap. 170A) — section 3 (definition of “port” for the purpose of the Order)
Source Documents
This article provides an overview of the Gas (LNG Importer’s Licence — Exemption) Order 2021 for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.